NA Supplier Packaging Standards << Expendable Packaging >> 3-31-15 Rev 1

Table of Contents Section 1: Goals & Objectives Section 2: Packaging Development and Quoting, Ideal Time-line Section 3: Supplier Responsibilities Section 4: Expendable Dunnage Standards Section 5: Expendable Box Standards Section 6: Expendable Pallet Standards Section 7: Palletizing Standards Banding Stacking Ordering Methods Section 8: Mix Loading Requirements Section 9: Labeling Requirements Section 10: New Component Packaging Requirements Section 11: Packaging Specification Section 12: Compliance Measures Section 13: NAGC Packaging Contact List Appendices:

Section 1: Goals & Objectives Outline the minimum acceptable Expendable Packaging requirements for production parts shipped to DENSO North American Group Companies and to define the required communication timeline for packaging development and approval Objective: Ensure Safety Guarantee Part Quality Approved Packaging is available to support mass production Packaging Standardization Production Efficiency Minimize Packaging, Transportation and Logistics Costs Minimize our Landfill bound waste Note: In addition to standard DENSO supplier packaging guidelines, each DENSO plant location may have its own unique requirements that must be followed. Supplier is responsible to check the appendix for specific DENSO plant requirements.

Section 2: Packaging Development and Quoting Timeline Pre Selection Activity Approval Steps Samples & Changes Pkg Review Process

Section 3: Supplier Responsibilities: Submit Preliminary Packaging Specification and Preliminary Packaging Cost Estimates along with Purchasing-required RFQ paperwork. Establish a packaging communication contact within supplier’s company through which DENSO plant staff will work. DENSO depends upon the supplier to be the expert for the parts being supplied and to deliver a quality part to our manufacturing location(s). Meet the standards contained within the DENSO North American Supplier Packaging Guide unless the specific DENSO plant location requests otherwise or a deviation is authorized by that plant. Submit sample packaging and perform testing when necessary at supplier cost. Utilize approved packaging for mass production, including standard 45x48 pallet. Utilize pallets and boxes that are strong enough to survive the normal delivery route, include full trailer height stacking of pallets. DENSO plant Packaging or Production Control staff approve the workability of the packaging (size, weight, etc); not part/packaging quality. If expendable is used only as a back up to returnable packaging, it must be the same size, hold the same number of parts, and perform the same as the returnable packaging.

Section 4: Expendable Dunnage Standards DENSO plant location may instruct supplier on style of dunnage to use. The supplier is expected to select and/or design the dunnage to protect the parts. Dunnage must be recyclable. Dunnage must protect the parts during the normal storage and transit environment. Dunnage must allow ease of removal of the parts to support production processing. If not explicitly call out on part drawing, supplier is responsible to decide if rust preventive material(s) are needed and should inform us at RFQ timing. If part is a visible/trim part on car: Class A surface protection materials should be used Dust inhibiting coating should be used on corrugated dividers Standard Dunnage Styles May Include: Bulk in a bag Cell Packed Custom Trays Layer Packed

Section 5: Expendable Box Standards Maximum Box Weight Allowed: ≤ 30 lbs / 13.6 kgs Box Fill Requirement: >85% full by volume, Target = 100% No Printing allowed except for: Small Font Box Part Number Box Makers Certification Stamp Country of Origin for parts contained within Box Strength: Boxes must be support pallet stacking for shipping up to full trailer height of 104” inches Box Construction: No staples allowed in boxes or lids (Safety Concerns) Backup Expendable Boxes: Must be the same size as the returnable box Hold the same number of parts as the returnable box When possible allow parts removal in the same method as the returnable packaging Supplier is required to have back expendable available for immediate use DENSO is not responsible for dead stock or tooling costs for expendable back up packaging Box sizes: Boxes must cube a 45” x 48” standard pallet

Section 5: Expendable Box Standards (continued) Standard Box Sizes: 12 x 15 x H* 24 x 15 x H 24 x 22 x H *Height of box to be determined by part size for expendable Standard Heights: 4,5,7,9,11 inches Note: When using a box smaller than 24”x15”, a layer pad or layer lid must be used to add stability to the pallet Kanban (Label) Location: Place kanban on the narrow end of the box. Kanban must be placed in a pouch, unsealed perfered Taping kanban to box is unacceptable. Standard Styles: RSC (Regular Slotted Container) HSC w/lid(Half Slotted Container) HSC w/2” French Fold Note: Not all locations allow all three box styles

Section 6: Expendable Pallet Standards Pallet Requirements: Required Pallet Size: 45” x 48” x 5”, 4 way entry Bottom Board Importance: The purpose of the bottom boards is to evenly transfer the weight when the pallets are stacked, if the pallet has less than 15” of wdith combined on the bottom boards, any crushing damage occurring during transit will be charged back to the supplier Pallet Construction: STYLE: Notched Stringer (4 way entry) DECK: 7 boards (.5 thickness), min width 3” BOTTOM: 4 boards (.5 thickness) min width 3” (Deck board width must add up to 15 or more inches combined) STRINGERS: 3 Heat Treated: Required for wooden pallets crossing International Borders. Heat Treating Requirement links: https://www.ippc.int/sites/default/files/documents/20131115/ispm_15_2009_en_2013-11-15_2013111509%3A00--504.61%20KB.pdf http://www.aphis.usda.gov/wps/portal/banner/help?1dmy&urile=wcm%3apath%3a%2Faphis_content_library%2Fsa_our_focus%2Fsa_plant_health%2Fsa_export%2Fsa_wood_packaging%2Fsa_by_country%2Fct_countries_requiring_ispm_15

Bigger Picture of 45 x 48 Pallet

Section 7: Palletization Standards Palletizing Requirements: 1. Boxes must always be secured to the pallet. 2. Boxes must cube a 45” x 48” pallet. 3. Box corners should be supported by deck boards, if not a base pad should be used. 4. No overhanging boxes. 5. Maximum pallet height 52 inches to allow double-stacking on trailers. 6. Pallet must be double-stackable during transit. 7. Stretch wrap or plastic banding must be used to secure the load to the pallet. 8. No non-transparent stretch wrap allowed. 9. For boxes smaller than 24x15”, layer pads should be used to make the load stable Banding Requirements: 1. Only one-half inch (½”) polypropylene or polyester banding is allowed. 2. No metal banding allowed. 3. Minimum of two bands always required. Banding Calculation: (Band Strength/2) x (Number of Bands) = Max Pallet Weight 4. Banding should run parallel to large fork openings 5. Banding should not be run through 4 way entry notches 6. Corner posts should be used to protect the top boxes from being crushed

Section 7: Palletization Standards Continued Stretch Wrap Requirements: 1. Wrap used must be transparent 2. Wrap must prevent the load from sliding off of the pallet base 3. A minimum of two wraps at the base and the top of the pallet should be used 4. Wrap should overlap to secure all boxes from shifting When to use Stretch Wrap vs Banding? Stretch Wrap 1. Light to Medium weight pallets (0 to 750 lbs) 2. Pallets with many small to medium sizes boxes that could slide out of place 3. Secure uneven layers/loads Banding 1. Medium to Heavy Weight pallet (751 & over) 2. Pallets with corrugated pallet bins or sleeves to contain the boxes. 3. Odd shaped items on pallets Banding & Wrap 1. Air shipments 2. Heavy weight shipments of many small boxes that can not be secured by banding DENSO Plant Preferred Ordering Methods: Option 1: Full pallets of identical product (volume and shipment frequency must be considered) Option 2: Full layer with mixing* allowed Option 3: By individual box with mixing* allowed Note: Not all NAGCs allow mixing, supplier responsible to confirm with specific ship to locations

Pallet Stacking Rules: Section 7: Palletization Standards (continued) Pallet Stacking Rules: Expendable packaging support stacking and shipping at full trailer height of 104 inches. Wooden pallets should not be stacked on top of returnable packaging unless requested by DENSO North American Integrated Logistics (NAIL) or the ship to plant location. Returnable packaging should not be stacked on top of expendable packaging. Do not wrap or band two or more pallets together unless requested by the ship to plant location. Max weight/trailer stack = 2000 lbs unless requested by DENSO NAIL or the ship to plant location. (2000 lbs is only a guide for production shipped via NAIL routes) Preferred Pallet Load Sizes Stacking Height During Transit 45" x 48" x 26" 4 pallets high 45" x 48" x 34" 3 pallets high 45" x 48" x 52" 2 pallets high

Section 8: Mix Loading Requirements Mix Loading Pallet Rules: 1. Mixed parts on a pallet allowed if the product is on the same Delivery Order. 2. “Like” part numbers must be mixed on the same pallet. 3. Filler “Empty” boxes should be used to level off a layer to allow stacking. 4. When an “Empty” boxes is used, it must say “EMPTY” on it. 5. A Mixed Pallet Sheets (2) must be used when shipping a mixed pallet (See Forms -00X) Example: Pallet Mix Loading INCORRECT 2 Pallet Mixed CORRECT 1 Pallets Mixed Like part numbers together Unitized on one mixed pallet Empty box uses to level top layer E C D A E F A B E F C D A B Empty Mix Load Like part numbers not together on same pallet Two pallets used instead of one Unstable stacking configuration No “Empty” boxes used to level layers

Labeling Requirements: Section 9: Labeling Requirements Labeling Requirements: DENSO required box kanban/label placed on the narrow end of the box. Box kanban/label must be placed in a pouch, do not tape the label to the box. If pallet consists of “Mixed Part Numbers”, then 2 mixed pallet labels must be placed on adjacent sides of the pallet (see 2nd picture below). If shipping via NAIL, then two “Skid Sheets” on adjacent sides of the pallet (see 3rd picture below). Mixed Pallet Sheets Skid Sheets Box Label in Pouch

Section 10: New Component Packaging Requirements DENSO may choose to send the supplier specific packaging requirements to quote. The attached form maybe used to communicate those requirements If the supplier does not feel that the requested packaging will protect the parts, then the supplier should contact the Packaging Contact for review

Section 11: Packaging Specification NA Standard Pkg Specification: 1. Must be completed by supplier and submitted to Purchasing along with Request for Quote Documents 2. Location to get latest copy of the NAGCs packaging Specification: www.densocorp-na.com/suppliers/resources 3. Must meet the minimum packaging requirements as described in this Guide: Summary: A. Box: 1.Must cube a 45 x 48 pallet 2.Weight: ≤30 lbs/13.6kgs 3.Support Pallets Stacking up to 104” by pallet during transport B. Dunnage: 1. Designed to protect parts during transportation 2. Allow for easy removal of parts for production C. Pallet: 1. 4 Way Entry 45 x 48 pallet 2. Heat Treated Stamp required, if parts are crossing an International Border

NA Standard Pkg Specification (Preliminary Spec)

Specification Instructions Supplier Packaging Specification to be submitted along with all other required RFQ documents Packaging Cost fields must be completed at the time of RFQ. No Blank fields allowed DENSO will complete fields in yellow Cells outlined in RED are self calculating. Do not type in these fields No fractions allowed 8 1/2, use decimals 8.5 All information is in inches, pounds, and US Dollars Like part numbers using the same packaging can be submitted on the “Preliminary” form. Final Specifications must be completed for each part number File Name to be “Supplier Name & DENSO Part Number.xls (ACME AA123456-7890.xls) Comment boxes are indicated by a red triangle in the cell and contain a list of choices or pertinent information to complete that area –Place the cursor over the red triangle and a box will pop up for review Digital Photos, computer drawings, or electronic sketches are acceptable Photo files must be inserted into the document: Choose “Insert”, “Picture”, From File” Do not copy/paste the photos into the document Photo size must me less than 500Kbytes each (*.jpg format is recommended), total SPS must me be 2MB or less Enter part weight, & quantity DATA assuming a full (maximum height) pallet of each part being shipped, or up to 2000lbs/pallet “Fill Ratio” field requires you to estimate the fullness of the box using the Criteria in the Comment box. Any spec with less than 85% full will be rejected If you need to add additional information, please insert a text box at the bottom of the specification. If you have any questions, please contact the packaging person for the plant(s) that you are shipping to (See Section 12)

Please call the Plant you will be shipping to Packaging and Purchasing Contacts for specific questions or instructions